Computational Models in Insurance and Financial Mathematics

A special issue of Mathematics (ISSN 2227-7390). This special issue belongs to the section "E5: Financial Mathematics".

Deadline for manuscript submissions: closed (10 October 2025) | Viewed by 504

Special Issue Editors


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Guest Editor
School of Statistics, East China Normal University, Shanghai 200050, China
Interests: actuarial science; mathematical finance

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Guest Editor
Department of Actuarial Studies and Business Analytics, Macquarie University, Sydney 2113, Australia
Interests: optimal control in actuarial science; mathematical finance; numerical methods in stochastic systems; machine learning
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Special Issue Information

Dear Colleagues,

Advancements in computational and mathematical modeling are revolutionizing the fields of insurance and financial mathematics by improving risk assessment and uncertainty management. Recent studies highlight the effectiveness of computational approaches in evaluating financial risk management strategies and policy outcomes. This Special Issue aims to showcase cutting-edge research that leverages stochastic systems, numerical optimization, machine learning, and econometric techniques to tackle challenges in finance and insurance. By addressing complex problems in these fields, we seek to promote innovative solutions in risk evaluation, strategic decision making, and policy development. We invite high-quality research contributions that apply computational techniques to insurance and financial mathematics.

Dr. Linyi Qian
Prof. Dr. Zhuo Jin
Guest Editors

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Keywords

  • stochastic optimization in financial risk management
  • computational methods for insurance modeling
  • machine learning in financial mathematics
  • risk assessment models in innovation financing
  • computational techniques for intellectual property insurance
  • numerical approaches for pricing and evaluating insurance policies
  • policy impact analysis using computational models

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Published Papers (1 paper)

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Research

26 pages, 2278 KB  
Article
Optimal Decision-Making for Annuity Insurance Under the Perspective of Disability Risk
by Ziran Xu, Lufei Sun and Xiang Yuan
Mathematics 2025, 13(20), 3290; https://doi.org/10.3390/math13203290 - 15 Oct 2025
Viewed by 266
Abstract
Annuity insurance is a crucial financial tool for mitigating risks associated with aging, yet it has not gained significant traction in China’s insurance market, especially amid the challenges posed by an aging population. This study develops a discrete-time multi-period life-cycle model to analyze [...] Read more.
Annuity insurance is a crucial financial tool for mitigating risks associated with aging, yet it has not gained significant traction in China’s insurance market, especially amid the challenges posed by an aging population. This study develops a discrete-time multi-period life-cycle model to analyze optimal annuity purchases for China’s middle-aged population under disability risk and explores in depth the impact and underlying mechanisms of disability risk on their annuity insurance purchase decisions. Disability is endogenized via two channels: financial-constraint effects (medical costs and pre-retirement income loss) and stochastic health state transitions with recovery and mortality. Using data from China Health and Retirement Longitudinal Study (2018–2020) to estimate age- and gender-specific transition matrices and data from China Household Finance Survey (2019) to link income with initial assets, we solve the model by the endogenous grid method and simulate actuarially fair annuities. The findings reveal substantial under-demand for annuities among China’s middle-aged population. Under inflation, the modest yield premium of annuities over inflation significantly depresses purchases by middle- and low-wealth households, while high-wealth individuals are jointly constrained by rapidly rising health expenditures and inadequate annuity returns. Notably, behavioral patterns could shift fundamentally under a hypothetical zero-inflation scenario. Full article
(This article belongs to the Special Issue Computational Models in Insurance and Financial Mathematics)
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